Price Stickiness: Empirical Evidence of the Menu Cost Channel
A leading explanation in the economic literature is that monetary policy has real effects on the economy because firms incur a cost when changing prices. Using a unique database of cost and retail price changes, we find that variation in menu costs results in up to 13.3% fewer price increases. We co...
| Main Authors: | , , |
|---|---|
| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
MIT Press,
2015-12-23T14:48:25Z.
|
| Subjects: | |
| Online Access: | Get fulltext |